Renewable energy set to increase over 8 percent worldwide in 2022: IEA

New Delhi: Renewable energy is all set to break another record in 2022 globally, as it is expected to increase over 8 percent additional capacity, which is almost 320 GW, as per International Energy Agency.

In 2021, the annual capacity addition was 6 percent to almost 295 GW, despite the continuation of pandemic drive supply chain challenges.

The IEA however, cautioned renewable power’s global growth is set to “lose momentum” next year because solar PV expansion cannot fully compensate for lower hydro-power and steady year-on-year wind additions.

“In the absence of stronger policies, the amount of renewable power capacity added worldwide is expected to plateau in 2023, as continued progress for solar is offset by a 40% decline in hydropower expansion and little change in wind additions” it said.

The agency also talked about the cost of Solar PV, and said it is on course to account for 60 Per cent of global renewable power growth in 2022, followed by wind and hydropower.

“Solar PV and wind costs are expected to remain higher in 2022 and 2023 than pre-pandemic levels due to elevated commodity and freight prices. However, their competitiveness actually improves, due to much sharper increases in natural gas and coal prices.

“Energy market developments in recent months – especially in Europe – have proven once again the essential role of renewables in improving energy security, in addition to their well-established effectiveness at reducing emissions,” said IEA Executive Director Fatih Birol.

“Cutting red tape, accelerating permitting and providing the right incentives for faster deployment of renewables are some of the most important actions governments can take to address today’s energy security and market challenges, while keeping alive the possibility of reaching our international climate goals” he said.

The agency in its report also said that global additions of solar PV capacity are on course to break new records in both this year and next, with the annual market reaching 200 GW in 2023.

“Solar’s growth in China and India is accelerating, driven by strong policy support for large-scale projects, which can be completed at lower costs than fossil fuel alternatives” it informed.

Raising concerns over the policy uncertainties and complex permitting regulations in the wind sector, the agency said, “New additions of offshore wind capacity are set to drop 40 per cent  globally in 2022 but the global additions are still on course to be over 80% higher this year than in 2020.

“Even with its slower expansion this year, China will surpass Europe at the end of 2022 to become the market with the largest total offshore wind capacity in the world” the report said.

On Bio-fuel, the agency said the demand is expected to rise by 5 percent in 2022 and 3 per cent in 2023.